What counts here
This page lists taxes and yearly charges a state puts on the LLC itself, for an LLC taxed the default way (as a sole proprietorship or a partnership). It leaves out personal income tax on the owners' share of profit, sales tax the LLC collects from customers, payroll taxes, annual report fees and city or county taxes.
Texas
Texas franchise tax →
California
California LLC annual tax and LLC fee →
Delaware
Delaware LLC annual tax →
Tennessee
Tennessee franchise and excise tax →
Alabama
Alabama business privilege tax →
States that tax LLCs (23)
| State | Tax or charge | Based on | Applies to | Due |
|---|---|---|---|---|
| Alabama | Business Privilege Tax | Net worth in Alabama, at a rate graded by income | Only when the calculated tax is above a small no-filing level | With the federal return (March 15 for a calendar-year LLC taxed as a partnership); an initial return within two and a half months of forming |
| Arkansas | Annual Franchise Tax | A flat yearly tax on LLCs | Every LLC formed or registered in Arkansas | May 1 each year |
| California | LLC annual tax, LLC fee | A flat annual tax, plus a fee graded by California-source income | Every LLC formed in, registered in or doing business in California; the fee only above an income level | Annual tax by the 15th day of the 4th month of the tax year; estimated fee by the 15th day of the 6th month |
| Delaware | LLC annual taxBusinesses actually operating in Delaware may also owe its gross receipts tax, above an exclusion. | A flat annual tax, not prorated | Every LLC on the Delaware register, active at any point in the year | June 1 each year |
| Hawaii | General Excise TaxLegally a tax on the business, though usually passed on to customers like a sales tax. | Gross income of the business | Nearly all business activity in Hawaii | Periodic returns plus a yearly reconciliation |
| Illinois | Personal Property Replacement Income Tax | Net income, taxed at the entity level | LLCs taxed as partnerships; a single-member LLC is reported by its owner | 15th day of the 4th month after the year ends (Form IL-1065) |
| Kentucky | Limited Liability Entity Tax (LLET) | Kentucky gross receipts or gross profits, with a minimum | Entities with limited liability protection, including LLCs; smaller ones pay only the minimum | 15th day of the 4th month after the year ends |
| Maryland | Pass-through entity tax on nonresident members | Nonresident members’ share of Maryland income | Only LLCs with members who live outside Maryland | 15th day of the 4th month after the year ends (Form 510) |
| Minnesota | Partnership minimum fee | Minnesota property, payroll and sales combined | LLCs taxed as partnerships whose Minnesota activity passes a set level | 15th day of the 3rd month after the year ends (Form M3) |
| Nevada | Commerce Tax, State business license | Commerce Tax on Nevada gross revenue, by industry; a flat yearly business license | Commerce Tax only above a revenue level; the business license applies to nearly every LLC | Commerce Tax in mid-August for the year to June 30; the license renews with the annual list |
| New Hampshire | Business Profits Tax, Business Enterprise Tax | Business profits; and a base of compensation, interest and dividends | Business organizations including LLCs, each above its own filing level; single-member LLCs are not disregarded | Yearly return |
| New Jersey | Partnership filing fee, Tax paid for nonresident partners | A fee per owner; and tax on nonresident partners’ New Jersey income | The fee: partnership LLCs with more than two owners and New Jersey income. The nonresident tax: only LLCs with nonresident members. | 15th day of the 3rd month after the year ends (NJ-1065) |
| New Mexico | Gross Receipts TaxLegally on the seller, though it works much like a sales tax. | Gross receipts of the business | Businesses with New Mexico receipts | Periodic returns |
| New York | LLC annual filing fee | Graded by New York-source gross income | LLCs with New York-source income | Partnership LLCs by the 15th day of the 3rd month; single-member LLCs within 60 days of the year end (IT-204-LL) |
| Ohio | Commercial Activity Tax (CAT) | Taxable gross receipts | Only above the gross receipts exclusion | Yearly or quarterly returns, depending on receipts |
| Oregon | Corporate Activity Tax (CAT) | Oregon commercial activity (gross receipts), after a subtraction | Every entity type, only above a commercial activity level; registration starts at a lower level | Yearly return by April 15, with quarterly estimates |
| Rhode Island | Annual charge on pass-through entities | A flat yearly charge | LLCs registered in or doing business in Rhode Island | 15th day of the 3rd month after the year ends |
| Tennessee | Franchise Tax, Excise Tax | Franchise tax on net worth; excise tax on net earnings | Every LLC, including single-member LLCs owned by individuals, unless an exemption applies | 15th day of the 4th month after the year ends |
| Texas | Franchise Tax | Taxable margin | Every LLC; tax is owed only above the no-tax-due threshold, but a Public Information Report is filed every year | May 15 each year |
| Vermont | Minimum business entity tax | A flat minimum tax | LLCs taxed as partnerships | 15th day of the 3rd month after the year ends (Form BI-471) |
| Virginia | Annual registration feeA fee rather than a tax. Leaving it unpaid leads to automatic cancellation. | A flat yearly fee | Every LLC registered with the State Corporation Commission | By the end of the month the LLC was formed, each year |
| Washington | Business and Occupation (B&O) tax | Gross receipts, by type of activity, with a small business credit | Businesses with Washington gross receipts | Monthly, quarterly or yearly, as assigned |
| Wyoming | Annual report license tax | Assets located and used in Wyoming, with a minimum | Every LLC formed or registered in Wyoming | Paid with the annual report, by the first day of the anniversary month |
Thresholds and amounts change, so we describe each tax rather than quote figures. The linked state page or agency has the current numbers.
States with no entity tax on LLCs (27)
These states put no tax on an ordinary LLC itself. Owners still pay any state personal income tax on their share of the profit, and the LLC still files its yearly report where one is required.
Federal taxes
Federal income tax works the same in every state: a single-member LLC reports profit on the owner's return and pays self-employment tax, and a multi-member LLC files a partnership return. An LLC can elect to be taxed as an S corporation, which can reduce self-employment tax once profit is high enough; our S-corp savings calculator estimates the difference.
See also the compliance tracker and every cost of an LLC.
Frequently asked questions
Do LLCs pay state taxes?
An ordinary LLC passes its profit to its owners, who pay state income tax on it personally. On top of that, about half the states charge the LLC itself something: a franchise or privilege tax, a tax on gross receipts, or a flat yearly tax or fee.
Which states have no tax on LLCs?
27 states put no entity-level tax on an ordinary LLC, among them Alaska, Arizona, Colorado, Connecticut, Florida, Georgia. Personal income tax, sales tax and annual report fees still apply where the state has them.
What is a franchise tax?
A tax for the privilege of existing as, or doing business as, a company in a state. It is not based on profit in every state: some use net worth, some revenue or margin, and some charge a flat amount.
Does a single-member LLC pay these taxes?
Often yes. A single-member LLC is ignored for federal income tax, but several states still tax it as an entity: Texas and Tennessee are two, and California charges every LLC its annual tax.
Is the state tax included in StartGlobal’s $399?
The $399 includes the state fee to form the LLC. Yearly state taxes are paid to the state by the LLC, whichever service you use.
